Ethereum's performance in early 2026 is worth watching. After several days of consolidation, liquidity has been compressed to a critical level. The market is closed on Thursday, opening today on Friday, which could lead to increased volatility.

Currently, liquidity is mainly concentrated in the 2900-3100 range, with 2950 and 3050 being key levels for intensive liquidations. The price repeatedly hovers around the 3000 mark, and the triangular pattern is approaching a critical breakout point. On the upside, once it breaks through 3010, sufficient bullish momentum could push the price instantly to challenge 3030-3050, or even target the 3100 extreme. On the downside, a break below 2980, under similar conditions, could quickly lead to a decline toward 2950-2920, with the extreme at 2900. It is important to note that there is significant risk below 2900; if major players intend to execute liquidity cleanup at the beginning of the month, today is undoubtedly an excellent opportunity. A single northbound move could absorb nearby liquidity and then shift to southbound volume, with enough momentum to support a steady decline toward around 2850. However, considering that 2920-2880 forms a strong recent support zone, this area can serve as a pivot point for partial profit-taking.

Bullish strategy: Pay close attention when volume increases during a decline. Enter when clear bottom signals appear, such as decreasing volume with a rebound (long lower shadow) or multiple failed bottom tests with slight upward movement (multiple lower shadows). The optimal entry zone is 2780-2850, with 2850-2900 as a secondary choice. Set stop-loss at the position of the last lower shadow after the bottom is confirmed to achieve a high risk-reward ratio. Once the bottom is confirmed, consider holding long-term.

Bearish strategy: Prepare to short when volume increases during an upward move. Enter when clear top signals appear, such as decreasing volume with a stagnating rebound (long upper shadow) or multiple failed attempts to top out with slight downward peaks (multiple upper shadows). The best entry zone is 3080-3130, with 3030-3050 as a secondary choice. Place stop-loss at the position of the last upper shadow after the top is confirmed. This also offers a high risk-reward ratio, but it is crucial to take profits in stages and use stop-losses to protect gains. Especially when facing strong support levels like 2920-2880-2850, it is advisable to retain some positions for continued observation.